Poland’s central bank is likely to ease monetary policy further Wednesday as the country’s economy loses steam, while changes to Hungary’s constitution and the outlook for the Czech Republic’s new private pension system will also be in focus.

Analysts polled by The Wall Street Journal expect the central bank in Warsaw to lower its benchmark interest rate 25 basis points to 2.5%, another record low, amid an almost stagnant economy and near-zero inflation.

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However, this could be the final cut in the current round of monetary easing, analysts said.

The expected rate cut would come as central banks in neighboring Hungary and the Czech Republic have also reduced interest rates to all-time lows amid economic turmoil.

The European Parliament will vote on whether Hungary’s constitutional revamp complies with the European Union’s principles following heavy criticism from the European Commission and rights groups, including Human Rights Watch.

In Prague, Deputy Finance Minister Radek Urban will update the media on the outlook for the privately managed segment of the country’s pension fund system.

OTHER NEWS

POLAND: Fugitive U.S. intelligence analyst Edward Snowden told Poland in an asylum request that he risks the death penalty at home, after he disclosed Washington’s alleged violations of the US constitution and global treaties. Holed up in the transit zone at a Moscow airport for 10 days since fleeing Hong Kong, the 30-year-old is seeking asylum in 20 countries.

CZECH REPUBLIC: Czech prime minister-designate Jiri Rusnok said Tuesday he expected his caretaker cabinet to be appointed on July 10 after an unprecedented corruption scandal brought down his rightwing predecessor.

“Wednesday next week is most likely” for the president’s formal approval of ministers, Rusnok told reporters in Prague.

Czech power company CEZ AS said on Tuesday it is delaying the decision on choosing a winner in its $10 billion tender to expand its Temelin nuclear plant as questions mount over the feasibility of the project.

SERBIA: Kosovo has called local elections for November 3, with the vote expected to be the first covering the whole of the breakaway territory including the ethnic Serb-populated north, officials said Tuesday.

The last poll, held in 2010, was boycotted by the majority ethnic Serb population in northern Kosovo, who reject Pristina’s unilateral declaration of independence in 2008.

HUNGARY: Hungary doesn’t want to come under the European Union’s political guardianship which it would find condescending, Prime Minister Viktor Orban said Tuesday at a debate in the European Parliament over the member country’s constitutional changes.

ROMANIA: Egypt’s state-owned wheat buyer, the General Authority for Supply Commodities, said Tuesday it bought a total of 180,000 metric tons of Romanian and Ukrainian wheat for shipment on Aug. 10-20.

CROATIA: Croatia said Tuesday it would not extradite a former top spy wanted by Germany, in a case many suspect prompted Chancellor Angela Merkel to snub weekend celebrations to mark Zagreb’s entry into the EU.

Police chief Vlado Dominic confirmed Croatia had received a European arrest warrant for Josip Perkovic, but said: “We will not act upon it since the criminal act (he is suspected of) was committed before 2002.”

About Emerging Europe

Emerging Europe Real Time provides sharp analysis and insight into what’s making news in Central and Eastern Europe. Drawing on the expertise of our reporters in the Czech Republic, Hungary, Poland, Russia and Turkey, the site provides an inside track on economics, politics and business in this emerging part of the European continent.